Musk’s xAI sues Apple, OpenAI alleging AI monopoly

Elon Musk's artificial intelligence startup xAI has sued Apple and ChatGPT maker OpenAI in a US federal court in Texas, accusing them of conspiring to shut out rivals from the fast-growing AI market.

The lawsuit filed on Monday claims Apple and OpenAI "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing." 

Apple this year integrated ChatGPT into iPhones, iPads and Macs under an exclusive partnership with OpenAI.

"If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store," the complaint said. 

xAI said it is seeking billions of dollars in damages.

Musk amplified the allegations on his social media platform X, writing: "A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists." 

Earlier this month, he warned he would sue Apple, calling its behaviour anticompetitive.

OpenAI dismissed the lawsuit as harassment. 

"This latest filing is consistent with Mr. Musk's ongoing pattern of harassment," a spokesperson said, according to Reuters. 

The case is another foray by Musk in an ongoing feud with OpenAI. He is already suing the company and CEO Sam Altman in California federal court over its shift from a nonprofit, which he co-founded in 2015, to a for-profit business.

Founded less than two years ago, xAI is positioning itself as a challenger to Microsoft-backed OpenAI and Chinese upstart DeepSeek.

In March, xAI acquired social media platform X for USD 33 billion to strengthen its AI training pipeline. Musk has also rolled out the Grok chatbot inside Tesla vehicles.

OpenAI's ChatGPT became the fastest-growing consumer app in history following its 2022 launch, cementing its position as the leading generative AI platform. 

Musk, meanwhile, has cast Grok as a rival system built to challenge OpenAI's dominance.